SuperGold Card transport review

Last updated on 23/12/2010 9:03 a.m. 

SuperGold Card background

The SuperGold Card is available to all eligible New Zealanders aged 65 years or over and those under this age who receive the New Zealand Superannuation or the Veterans Pension.

In 2008 funding of $18 million a year was made available by the government to allow free off peak travel on scheduled urban public transport services within regions for SuperGold card holders.

This concession was rolled out in most parts of the country on 1 October 2008 with all regions (except West Coast) in the scheme by 1 November 2008.

The scheme offers the approximately 560,000 (as at October 2010) SuperGold card holders in New Zealand increased mobility and greater access to the community.

The number of SuperGold cardholders is increasing on average by 20,000 net a year.

Review of SuperGold card public transport scheme

At the time the SuperGold card scheme (the scheme) was implemented in 2008 it was announced a review would be undertaken after the first 12 months to identify any refinements that may need to be made to ensure its long term sustainability.

As the initiative was new to New Zealand and as there was little international data on similar schemes, projections on uptake have largely needed to be estimated.

After the first 12 months of operation it became clear that the scheme was not financially sustainable with the funding available.

To assure the scheme’s future sustainability, changes needed to be made to reduce costs.

The aim of the review process was to develop recommendations for changing the scheme in a way that is fair to all while delivering enough cost savings to make it sustainable for the next few years.

The review considered how a consistent national level of service can continue to be provided for the scheme within the available budget of $18 million a year.

This included looking at:

  • the uptake of the scheme in each region
  • how the definition of ‘off peak’ is used around the country
  • how operators are being reimbursed for SuperGold card trips.

In addition, key stakeholders including regional and local authorities, public transport operators, Grey Power, Age Concern NZ, the Returned and Services’ Association (RSA), and the Ministry of Social Development’s Volunteer Community Co-ordinators for the Office for Senior Citizens were asked to give feedback on the options for keeping the scheme financially sustainable.

Submissions closed on 26 April 2010.

Outcome of the Review

On 8 October 2010, the government announced some changes to the scheme in response to the review.

  • The government commits an extra $9 million into the scheme over the next two years to ensure it can keep up with growing demand - taking total government funding for the scheme to $45 million over the next two years.
  • Regional councils and operators are reimbursed at 65 percent of the average adult fare for the next two financial years 2010/11 - 2011/2012 (currently 75 percent).
  • Regional councils have to absorb administration costs so funding can be redirected to the travel concessions.
  • The NZ Transport Agency's budget for administering the scheme was reduced.
  • There is a moratorium on major new services entering the scheme for the next two financial years.

The new reimbursement rate is subject to a hardship clause. Where operators can provide evidence that they would not be able to continue to offer services to SuperGold card holders at a 65 percent reimbursement rate they can apply for a higher rate for these specific services - up to the original 75 percent.

Ongoing work

The Ministry of Transport will consider options for a financially sustainable scheme beyond 2011/12.